Public advised to expose smugglers
Sep 18, 2005
REVENUE agencies in Uganda and Kenya have called for harsh penalties for smugglers and traders involved in illicit trade.
By James Odomel
in Kisumu
REVENUE agencies in Uganda and Kenya have called for harsh penalties for smugglers and traders involved in illicit trade.
At a cross-border meeting in Kisumu, Kenya on Friday, officials from the Uganda and Kenya revenue authorities, the Uganda and Kenya Police Forces, and the Special Revenue Protection Services, said the judicial system appeared to favour smugglers, and called for it to be geared towards discouraging the illicit trade.
“The existing judicial penalties to the smugglers are too soft. There should be increased penalties and speedy judicial processes to convict offenders,†the officials recommended.
The meeting, attended by British American Tobacco East Africa officials and Kenya Institute of Public Policy and Research Analysis (KIPPRA), also called for a harmonisation of policies, particularly the excise duties, across the countries.
Dr Shem Ouma, KIPPRA’s senior policy analyst, said, “There is need to name and shame the warlords of illicit trade. We know them but we do not name them. We need not only to blacklist companies that engage in illicit trade, but we need also to blacklist their directors. We need to hit the manufacturers of illicit products at source, so that we stop them entirely. But all this cannot happen without goodwill from the Government.â€
A KIPPRA report for May, said the East African Community and the DR Congo lose $25m in revenue annual to illicit trade.
Ouma said losses in operating capacities of up to 30%, and associated losses in employment opportunities of above 27%, have been experienced by manufacturing firms whose products are affected.
In Kenya, this translates to an average annual revenue loss of over Ksh64m from tobacco alone.
“Poverty is also an issue, so consumers will opt for cheaper products regardless of how genuine.
“Consumers are unable to distinguish between genuine and fake goods,†Ouma said.
He said in Kenya, cigarettes designated for export markets are diverted to the local market or smuggled into neighbouring countries.
SRPS spokesman Lt Barigye Bahoku said, “There is need to escort goods up to the exit points and interface with counterparts in neighbouring countries.â€
He said in 2002, over 49 entries of export cigarettes were re-exported from Kenya via Uganda to either DR Congo or Sudan.
“These entries were never received in Uganda but a follow-up indicated that the same entries were received in Uganda reflecting salt, mattresses and other general merchandise.
“Kenya is believed to have lost over Ksh136m in rebates alone.
“Obviously, these cigarettes ended both in Kenya and Uganda.â€
BAT national sales manager, Robert Ssemakula, said Uganda loses up to 12% of tobacco tax to smugglers.
“We need a databank to facilitate decision-making, information sharing and dissemination among partner states,†he said.
Ends
in Kisumu
REVENUE agencies in Uganda and Kenya have called for harsh penalties for smugglers and traders involved in illicit trade.
At a cross-border meeting in Kisumu, Kenya on Friday, officials from the Uganda and Kenya revenue authorities, the Uganda and Kenya Police Forces, and the Special Revenue Protection Services, said the judicial system appeared to favour smugglers, and called for it to be geared towards discouraging the illicit trade.
“The existing judicial penalties to the smugglers are too soft. There should be increased penalties and speedy judicial processes to convict offenders,†the officials recommended.
The meeting, attended by British American Tobacco East Africa officials and Kenya Institute of Public Policy and Research Analysis (KIPPRA), also called for a harmonisation of policies, particularly the excise duties, across the countries.
Dr Shem Ouma, KIPPRA’s senior policy analyst, said, “There is need to name and shame the warlords of illicit trade. We know them but we do not name them. We need not only to blacklist companies that engage in illicit trade, but we need also to blacklist their directors. We need to hit the manufacturers of illicit products at source, so that we stop them entirely. But all this cannot happen without goodwill from the Government.â€
A KIPPRA report for May, said the East African Community and the DR Congo lose $25m in revenue annual to illicit trade.
Ouma said losses in operating capacities of up to 30%, and associated losses in employment opportunities of above 27%, have been experienced by manufacturing firms whose products are affected.
In Kenya, this translates to an average annual revenue loss of over Ksh64m from tobacco alone.
“Poverty is also an issue, so consumers will opt for cheaper products regardless of how genuine.
“Consumers are unable to distinguish between genuine and fake goods,†Ouma said.
He said in Kenya, cigarettes designated for export markets are diverted to the local market or smuggled into neighbouring countries.
SRPS spokesman Lt Barigye Bahoku said, “There is need to escort goods up to the exit points and interface with counterparts in neighbouring countries.â€
He said in 2002, over 49 entries of export cigarettes were re-exported from Kenya via Uganda to either DR Congo or Sudan.
“These entries were never received in Uganda but a follow-up indicated that the same entries were received in Uganda reflecting salt, mattresses and other general merchandise.
“Kenya is believed to have lost over Ksh136m in rebates alone.
“Obviously, these cigarettes ended both in Kenya and Uganda.â€
BAT national sales manager, Robert Ssemakula, said Uganda loses up to 12% of tobacco tax to smugglers.
“We need a databank to facilitate decision-making, information sharing and dissemination among partner states,†he said.
Ends